Section 7 insolvency admission upheld after default was proved through loan records, notices, and unpaid debt evidence.

An application under section 7 of the Insolvency and Bankruptcy Code was found complete, and default was held proved on the basis of loan documents, account statements, recall and demand notices, CRILC records, and the settlement proposal. The corporate debtor did not file any reply affidavit despite opportunities, and the account had been declared non-performing asset with the debt remaining unpaid. As the proposed interim resolution professional had given consent and no disciplinary proceedings were pending, the statutory requirements for admission were satisfied. The application was admitted, corporate insolvency resolution process was directed to commence, moratorium was imposed, and an interim resolution professional was appointed.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and whether default was proved so as to admit the corporate insolvency resolution process.

Analysis: The financial creditor produced the loan documents, account statements, recall notice, demand notice, CRILC report and settlement proposal to show continuing default. The corporate debtor did not file a reply affidavit despite opportunities. The records showed that the account had been declared non-performing asset and that the debt remained unpaid. The proposed interim resolution professional had also furnished consent and there were no disciplinary proceedings pending. On this material, the statutory requirements for admission under section 7 were found satisfied.

Conclusion: The application was admitted and corporate insolvency resolution process was directed to commence, with moratorium imposed and an interim resolution professional appointed.

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